Mangalore Chemicals may not slip below Rs 52-53: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "It looks like Burman's who have been holding maybe about 17-18 percent stake in Mangalore Chemicals and Fertilisers through two investors in the company seems to have exited. Now it seems that Deepak Fertilizers have acquired 18-19 percent stake in the company and it is going to be an interesting turn to the remaining stake of 22 percent which is held by UB Group. 10 percent is held by one of the so called strategic investor, that is, Zuari Agro and about 18-19 percent is held by Deepak Fertilisers, which is a prominent player in the chemical space. In fact, it is not so much in the fertilizer space because Deepak Fertilisers has migrated from fertilizer to chemicals."

He further added, "So, it will be an interesting play and now in the given situation probably the pledged shares of 22 percent of UB Group may call both the parties for negotiated deal and it will be interesting to see what kind of prices will be offered by both of them. The upside is not likely to be seen beyond Rs 64-65, which we have seen yesterday and probably that should be the open offer."
"Given the situation the residual value or the fair value for the stock works out at about maybe Rs 52-56 at which the share is now ruling. However, the stake sell of UB Group now seems to be in the near term. I don't see much downside from hereon because Rs 52-53 seems to be a strong level which share should hold on," Tulsian said.